Anyone who has been paying attention over the past six months understands that the American economy is in trouble. Americans barely had time to rebuild from the Great Recession that started in 2008, and now we seem to be headed into another one as a result of the Covid-19 pandemic and a perfect storm of other factors.
In June, the New York Times released an article that didn’t mince words. The very headline reads: “A Tidal Wave of Bankruptcies Is Coming.” While the article focuses primarily on business bankruptcies, it has implications for how personal finances may suffer as well.
The End of Long-Established Companies
Car rental company Hertz and fashion retailer J. Crew were just two of the household-name companies that recently announced they would be filing for bankruptcy. And they are far from alone.
So what happens when these companies – many with national reach – must significantly downsize operations or liquidate entirely? The ripple effects will be felt among all the employees who lose their jobs in an already poor job market.
Americans Were Already Struggling
Even before the pandemic hit, many Americans weren’t doing all that well financially. If you are living paycheck to paycheck, it only takes one unexpected cost or emergency to throw everything out of balance. Losing a job or getting sick can start a financial spiral that is very difficult to recover from.
If You Are Facing Overwhelming Debt, Help Is Available
The year 2020 will likely go down as one of the hardest in living memory, and we may be feeling the effects of it for years to come. If you are among the millions of Americans struggling with overwhelming debt during this difficult time, you may want to speak to an experienced bankruptcy attorney about your options for debt relief and a fresh start.